To determine the value of M1, we need to understand the components that are considered part of M1.
M1 includes:
1. Checkable Bank Deposits
2. Currency in Circulation
3. Travelers Checks
Based on the provided data:
- Checkable Bank Deposits: \[tex]$2 Trillion
- Currency in Circulation: \$[/tex]1.5 Trillion
- Travelers Checks: \[tex]$0.5 Trillion
Now, we will sum these components to find the total value of M1:
1. \(2 \, \text{Trillion} + 1.5 \, \text{Trillion} = 3.5 \, \text{Trillion}\)
2. \(3.5 \, \text{Trillion} + 0.5 \, \text{Trillion} = 4.0 \, \text{Trillion}\)
Thus, the value of M1 is \$[/tex]4.0 Trillion.
Therefore, among the given options, the correct value of M1 is:
- \$4.0 Trillion